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Ethereum Investors Should See Their Patience Rewarded Soon Enough

Ethereum - Ethereum Investors Should See Their Patience Rewarded Soon Enough

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You don’t have to be an expert in blockchain technology or decentralized applications to understand that something big is around the corner for Ethereum (CCC:ETH-USD). The issue that some investors may have is that the much-awaited launch of Ethereum’s new consensus layer, Ethereum 2.0, is requiring a lot of waiting. And that has shaken out some of the investors who have since looked to deploy their capital elsewhere. 

However, the investors that are sticking around are likely to be rewarded. Ethereum has been testing some “shadow forks” to help ensure that its transition will be successful. Remember, we’re talking about a large blockchain network. Employing the discipline of measuring twice and cutting once seems like a prudent strategy. 

This merge was to be done in three stages. The first stage was the creation and launch of the Beacon blockchain. This chain is a “clone” of the original Ethereum chain that uses proof-of-stake (PoS) rather than proof-of-work (PoW) as its consensus layer.

The next step will be for the Beacon chain to merge with the main Ethereum blockchain. When the Beacon chain launched in late 2020, many investors believed this merge was imminent. It wasn’t but it is expected to take place sometime in the second half of this year. In the meantime, Ethereum has been testing the merge through the use of shadow forks.

This is essentially a dry run that allows developers to identify any issues that will come up when the merge takes place. And there have been some issues. Which means that there will be more shadow forks to come. And the launch of Ethereum 2.0 may yet take some time. Even when it does there’s still a third stage that will fully integrate all of the features of Ethereum such as smart contracts. However, that is likely to follow along fairly quickly.  

All of this means the price of ETH will likely remain volatile, and even bearish, in the short term. However, as someone with a long position in Ethereum, the testing of shadow forks, even if it finds bugs, makes me more confident in a successful launch, not less.  

On the date of publication, Chris Markoch held a LONG position in ETH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. 

Chris Markoch is a freelance financial copywriter who has been covering the market for over five years. He has been writing for InvestorPlace since 2019.

Article printed from InvestorPlace Media, https://investorplace.com/2022/04/ethereum-investors-should-see-their-patience-rewarded-soon-enough/.

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